I think Amer Sports were expecting bigger profits but Enve isn't on the level of trying to make products for everyone. They make products that appeal to a smaller audience and they aren't looking or needing the big numbers of a larger company.. I think they will be fine..
The new env owner apparently is a newly minted/self made billionare from the company he founded who lives 20 minutes away, owns two of their bikes and whose son had a summer job building wheels there. Honestly sounds like the best buyer they could hope for.
It also seems like its not a crazy time to be investing in US manufacturing.
Probably the best thing for Enve. Once Amer sold off Mavic it left Enve as the only Amer brand in the cycling space. It would just continue to float about on its own without any support from Amer, but still be expected to contribute.
https://www.bicycleretailer.com/industry-news/2024/04/30/enve-gm-says-brand-good-hands-new-local-owner
The new env owner apparently is a newly minted/self made billionare from the company he founded who lives 20 minutes away, owns two of their...
The new env owner apparently is a newly minted/self made billionare from the company he founded who lives 20 minutes away, owns two of their bikes and whose son had a summer job building wheels there. Honestly sounds like the best buyer they could hope for.
It also seems like its not a crazy time to be investing in US manufacturing.
One would think after having a bulk of the world's manufacturing sector shut down a few short years ago that doing more domestic manufacturing would be viewed as a good idea... But....
I heard rumors that Walmart is buying Specialized and part of Trek? Anyone else hear this?
I saw someone on YouTube mentioning this, but I haven't heard anything solid.. Plus, it could be members of the Walton family, which isn't the same as Walmart..
Hmm maybe just a falling out vs. concerns about Title moving forward? It was rad to see what Brett was able to create with Title, and I'm curious to see what his next move will be. Hopefully Title can continue to thrive without his name attached to the brand.
I’m surprised physically removing the current ceo isn’t in the job requirements.
Awkwardly working around the former/current/maybe-still-future(?) CEO on a daily basis is one of the downsides of that position. The cc/bcc email situation gets tricky when someone else in the org literally thinks they have your job.
I'd love to see a running list of MTB brands in 1992 when I fully embraced MTB versus now just to see how many have come and gone.
A running total of how many there were then vs now.
I'd love to see a running list of MTB brands in 1992 when I fully embraced MTB versus now just to see how many have come...
I'd love to see a running list of MTB brands in 1992 when I fully embraced MTB versus now just to see how many have come and gone.
A running total of how many there were then vs now.
2 things on the Rheeder situation..
1) I wonder if this is a situation where sales weren't good enough and one of his vendors now has...
2 things on the Rheeder situation..
1) I wonder if this is a situation where sales weren't good enough and one of his vendors now has the company.. Seen this many times over the years..
2) New bike company? I guess he won't be on Commencal much longer..
Question: How many high end pedal/stem/handlebar companies can the industry really support? I think we've more than hit the point of absolute saturation there...
Question: How many high end pedal/stem/handlebar companies can the industry really support? I think we've more than hit the point of absolute saturation there...
That was my first thought as well, maybe he sees the writing on the wall and wants to “leave” rather than have to admit defeat in a few months when the company goes under.
I would guess he never had controlling interest in the company to begin with. I could see an established Asian component factory forming a spin-off company where they stake the development and manufacturing cost then bring in a popular rider as a minority owner to give the new brand legitimacy.
There can be a lot of risk in these situations when your personal "brand" is on the line and you don't have controlling direction of the company. The manufacturer could have said, "great we have legitimacy among core mtb riders, let's parlay that into the mass market, all the Walmart bikes will now come with Title components"
Question: How many high end pedal/stem/handlebar companies can the industry really support? I think we've more than hit the point of absolute saturation there...
Agreed. Every time yet another company announces a stem or a pair of flat pedals I wonder how they can possibly be seeing a market opportunity.
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is much easier (and potentially lower risk) to come to market with a component like a pedal compared to a suspension product. More pedals are sold every year (especially in the aftermarket where margins are higher) than forks. Plus, there is not a duo/trio of brands taking 80% of the market share.
For some suspension brands, if they sell a few thousand forks or shocks, they are going to have a good year. And they had a lot of overhead in developing and testing that product.
Pedals, it would not be too challenging to sell 10,000 sets of pedals (assuming a distribution channel in place) which have a lower overhead, higher margin, less development, and simpler production.
So for a business looking to grow its market presence and expand into an additional category, I can see how they justify it.
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is...
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is much easier (and potentially lower risk) to come to market with a component like a pedal compared to a suspension product. More pedals are sold every year (especially in the aftermarket where margins are higher) than forks. Plus, there is not a duo/trio of brands taking 80% of the market share.
For some suspension brands, if they sell a few thousand forks or shocks, they are going to have a good year. And they had a lot of overhead in developing and testing that product.
Pedals, it would not be too challenging to sell 10,000 sets of pedals (assuming a distribution channel in place) which have a lower overhead, higher margin, less development, and simpler production.
So for a business looking to grow its market presence and expand into an additional category, I can see how they justify it.
I was about to say, it doesn't matter if the volume is higher, what kind of margins are you getting with pedals but they are selling theirs for like $160 haha. I can't imagine spending that on pedals, esp. flat pedals.
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is...
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is much easier (and potentially lower risk) to come to market with a component like a pedal compared to a suspension product. More pedals are sold every year (especially in the aftermarket where margins are higher) than forks. Plus, there is not a duo/trio of brands taking 80% of the market share.
For some suspension brands, if they sell a few thousand forks or shocks, they are going to have a good year. And they had a lot of overhead in developing and testing that product.
Pedals, it would not be too challenging to sell 10,000 sets of pedals (assuming a distribution channel in place) which have a lower overhead, higher margin, less development, and simpler production.
So for a business looking to grow its market presence and expand into an additional category, I can see how they justify it.
I think you are articulating the trap many people looking to start a business fall into. Its like starting a "fashion brand" with a few screen printed tee shirts. Anyone can do it, but as a result, you really don't have much of a company unless you can crack some code around brand equity/marketing/advertising.
On that note, I'm not going to remotely pretend to be some kind of expert when it comes to that style of business. Those who have done so have built enormous amounts of wealth, but I feel its lottery ticket type odds. Everyone thinks they can do it, but when you are playing that kind of game most fail.
In this space, I'd argue performance and price are the primary drivers to buying decisions. At minimum, pick one. If you pick neither...you better have one hell of a marketing, advertising, distribution and "branding" strategy...and even then, I'd wager all that big brained go to market thinking is going to further erode whatever margins you had in the first place.
Digression here - but Title may have done better going the full LVMH route. Gold plated handlebars and diamond encrusted pedals. Hey...nobody has done it yet, right? Luxury bike brand on a whole new level. LOL.
Question: How many high end pedal/stem/handlebar companies can the industry really support? I think we've more than hit the point of absolute saturation there...
I have a couple stem ideas I was prototyping/printing when a pal who is firmly more entrenched on the bike mfg side of things said pretty much the same exact thing. It stung, but hard truths often do. How many $100+ stems do we really need? I may revisit one of them at some later point since it had some novel aspects, but that can wait til winter.
I think Amer Sports were expecting bigger profits but Enve isn't on the level of trying to make products for everyone. They make products that appeal to a smaller audience and they aren't looking or needing the big numbers of a larger company.. I think they will be fine..
https://www.bicycleretailer.com/industry-news/2024/04/30/enve-gm-says-b…
The new env owner apparently is a newly minted/self made billionare from the company he founded who lives 20 minutes away, owns two of their bikes and whose son had a summer job building wheels there. Honestly sounds like the best buyer they could hope for.
It also seems like its not a crazy time to be investing in US manufacturing.
Probably the best thing for Enve. Once Amer sold off Mavic it left Enve as the only Amer brand in the cycling space. It would just continue to float about on its own without any support from Amer, but still be expected to contribute.
One would think after having a bulk of the world's manufacturing sector shut down a few short years ago that doing more domestic manufacturing would be viewed as a good idea... But....
I heard rumors that Walmart is buying Specialized and part of Trek? Anyone else hear this?
I saw someone on YouTube mentioning this, but I haven't heard anything solid.. Plus, it could be members of the Walton family, which isn't the same as Walmart..
Are we doing bike shops/internet shops too? Just saw going out of business ads for Colorado Cyclist and Planet Cyclery on FB. That sucks.
not the typical position you usually find listed in the swiss bike job listings:
https://www.ride-mtb.com/de/stellenangebote/scott-sports-ceo
Seems like a hostile working environment...
I’m surprised physically removing the current ceo isn’t in the job requirements.
rheeder out of Title and onto new things.
Hmm maybe just a falling out vs. concerns about Title moving forward? It was rad to see what Brett was able to create with Title, and I'm curious to see what his next move will be. Hopefully Title can continue to thrive without his name attached to the brand.
Awkwardly working around the former/current/maybe-still-future(?) CEO on a daily basis is one of the downsides of that position. The cc/bcc email situation gets tricky when someone else in the org literally thinks they have your job.
I'd love to see a running list of MTB brands in 1992 when I fully embraced MTB versus now just to see how many have come and gone.
A running total of how many there were then vs now.
get to work.
2 things on the Rheeder situation..
1) I wonder if this is a situation where sales weren't good enough and one of his vendors now has the company.. Seen this many times over the years..
2) New bike company? I guess he won't be on Commencal much longer..
probably got pissed after breaking all their bikes
Question: How many high end pedal/stem/handlebar companies can the industry really support? I think we've more than hit the point of absolute saturation there...
That was my first thought as well, maybe he sees the writing on the wall and wants to “leave” rather than have to admit defeat in a few months when the company goes under.
I would guess he never had controlling interest in the company to begin with. I could see an established Asian component factory forming a spin-off company where they stake the development and manufacturing cost then bring in a popular rider as a minority owner to give the new brand legitimacy.
There can be a lot of risk in these situations when your personal "brand" is on the line and you don't have controlling direction of the company. The manufacturer could have said, "great we have legitimacy among core mtb riders, let's parlay that into the mass market, all the Walmart bikes will now come with Title components"
Agreed. Every time yet another company announces a stem or a pair of flat pedals I wonder how they can possibly be seeing a market opportunity.
Counterpoint (I am not saying I think it makes sense to come to market with another bar, stem, pedal...) but from a business standpoint, it is much easier (and potentially lower risk) to come to market with a component like a pedal compared to a suspension product. More pedals are sold every year (especially in the aftermarket where margins are higher) than forks. Plus, there is not a duo/trio of brands taking 80% of the market share.
For some suspension brands, if they sell a few thousand forks or shocks, they are going to have a good year. And they had a lot of overhead in developing and testing that product.
Pedals, it would not be too challenging to sell 10,000 sets of pedals (assuming a distribution channel in place) which have a lower overhead, higher margin, less development, and simpler production.
So for a business looking to grow its market presence and expand into an additional category, I can see how they justify it.
I was about to say, it doesn't matter if the volume is higher, what kind of margins are you getting with pedals but they are selling theirs for like $160 haha. I can't imagine spending that on pedals, esp. flat pedals.
I think you are articulating the trap many people looking to start a business fall into. Its like starting a "fashion brand" with a few screen printed tee shirts. Anyone can do it, but as a result, you really don't have much of a company unless you can crack some code around brand equity/marketing/advertising.
On that note, I'm not going to remotely pretend to be some kind of expert when it comes to that style of business. Those who have done so have built enormous amounts of wealth, but I feel its lottery ticket type odds. Everyone thinks they can do it, but when you are playing that kind of game most fail.
In this space, I'd argue performance and price are the primary drivers to buying decisions. At minimum, pick one. If you pick neither...you better have one hell of a marketing, advertising, distribution and "branding" strategy...and even then, I'd wager all that big brained go to market thinking is going to further erode whatever margins you had in the first place.
Digression here - but Title may have done better going the full LVMH route. Gold plated handlebars and diamond encrusted pedals. Hey...nobody has done it yet, right? Luxury bike brand on a whole new level. LOL.
I have a couple stem ideas I was prototyping/printing when a pal who is firmly more entrenched on the bike mfg side of things said pretty much the same exact thing. It stung, but hard truths often do. How many $100+ stems do we really need? I may revisit one of them at some later point since it had some novel aspects, but that can wait til winter.
Post a reply to: Will more companies be shutting down in the next 12-24 months?